Jun 9, 2013

Legislation Proposed

U.S. Senators Tom Coburn, M.D. (R-OK), Jeff Flake (R-AZ), Angus King (I-ME), and Joe Manchin (D-WV) introduced the Reducing Overlapping Payments Act, which aims to protect the Social Security Disability Insurance and Unemployment Insurance programs by reducing overlapping benefits. The bill requires the Social Security Administration (SSA) to suspend Disability Insurance (DI) benefits during any month in which a recipient also collects Unemployment Insurance (UI) benefits, while also ensuring the SAA [SSA?] has the necessary information to identify overlapping DI and UI payments. According to the Government Accountability Office (GAO), in fiscal year 2010 over 117,000 individuals received more than $850 million in overlapping payments.

Why not have a direct computer interface to automatically record data, adjust payments, and collect or pay any incorrect payments? Of course, include on the application that this interface occurs so people are aware of this type of action. After all, in the USA, computers listen and record everything! People can always appeal any incorrect payment.

The disability program is going broke because of dishonest claimants, phony doctors, and unethical lawyers, all aided and abetted by lazy, work-at-home aLJs who pay virtually every case just to make "numbers."

Little thought was given to how such an offset would effect work incentives for those beneficiaries willing to (or currently) trying to work. It may be particularly awful for concurrent beneficiaries (SSD + SSI) who may be forced by law to apply for UI in some situations, who then will face disruptions in their benefits and medical insurance...all because they may have tried to work part time and thus earned eligibility for a small UI benefit. It's also just shifting funds from states to the feds in states that already offset or don't allow UI when SSD is collected. I hope they either vote it down or iron out those wrinkles.

I think it's workable as long as it is implanted in the future. I don't think it would be too difficult to police. In the state I'm in, SSA already has access to the states database for people getting Medicaid, food stamps and cash. Doesn't seem like it would be too difficult to tie unemployment benefits. It only takes a minute or two to search.